CED - Enterprise Zone (Income Tax)

City of Phoenix Enterprise Zone

Enterprise Zone Income Tax Credits Benefit

Eligibility

All businesses in the zone with less than 10% retail of products that are either manufactured at the location, food and beverage for employees, or promotional products with company logo. A business must create net new jobs over the previous tax year, limited to 200 jobs per year.

Jobs must meet a quality definition as follows:

Full-time, performed primarily at zone location
Minimum target wage = $9.64 per hour in 2007
Health benefits paid at least 50% by employer

Positions must be filled for a minimum 90 days of the tax year. Also, 35% of the new positions must be filled by zone residents. Jobs must be net new, and new to Arizona.

Tax Benefit

Employer can receive up to $3,000 credit for each qualifying job, phased in over three years as follows:

$500 credit the first year
$ 1,000 credit the second year
$ 1,500 credit the third year

Process

Company is responsible for determining zone residency status of employee, preparing and filing forms,
and maintaining records.
Employer retains normal personnel records related to wages, benefits and residency to substantiate
credits in the event of an audit.
The employer claims credits on Form 304, Enterprise Zone Tax Credits, when filing State corporate
income taxes.
Credits can be carried over for up to five years.

Location is Everything!	Where are the Entreprise Zones?	EZ Benefits	Final Authority and Applications
Get in the Zone. Enterprise Zone, that is...	Confirm your Address Fast!	City of Phoenix Contact	Contact Us

City of Phoenix Community and Economic Development Department 200 West Washington Street, 20th Floor Phoenix, Arizona 85003	Call: 602.262.5040 Fax: 602.495.5097 TTY: 602.534.3476
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